The studies on the outreach of microfinance programmes have so far focused on the supply side: the higher transactional costs incur when a microfinance institution (MFI) reaches out to the poor. Using a large household survey dataset from China, this study examines the low outreach achieved by three MFIs in China from a perspective of demand. The study found that the Grameen model microfinance programmes in China have failed to target the very poor automatically in the poor areas, as the demand for micro-loans is positively related to the household incomes, the opportunities for off-farm investment and the educational level of female borrowers. Many poor households rationed themselves out of the microcredit market. The study concludes that the current microfinance programmes in China even failed to target the very poor in the very poor areas of China, and have not contributed positively to poverty reduction. To improve the outreach of microfinance programmes to the poor, it is important to raise the demand for micro-loans from the poor by removing the other constraints and by tailoring the micro-loan products to the need of the poor. More importantly, direct fiscal support would be more important for the very poor in the poor areas.

(2007). The demand for microcredit as a determinant for microfinance outreach: evidence from China [journal article - articolo]. In SAVINGS AND DEVELOPMENT. Retrieved from http://hdl.handle.net/10446/27389

The demand for microcredit as a determinant for microfinance outreach: evidence from China

2007-01-01

Abstract

The studies on the outreach of microfinance programmes have so far focused on the supply side: the higher transactional costs incur when a microfinance institution (MFI) reaches out to the poor. Using a large household survey dataset from China, this study examines the low outreach achieved by three MFIs in China from a perspective of demand. The study found that the Grameen model microfinance programmes in China have failed to target the very poor automatically in the poor areas, as the demand for micro-loans is positively related to the household incomes, the opportunities for off-farm investment and the educational level of female borrowers. Many poor households rationed themselves out of the microcredit market. The study concludes that the current microfinance programmes in China even failed to target the very poor in the very poor areas of China, and have not contributed positively to poverty reduction. To improve the outreach of microfinance programmes to the poor, it is important to raise the demand for micro-loans from the poor by removing the other constraints and by tailoring the micro-loan products to the need of the poor. More importantly, direct fiscal support would be more important for the very poor in the poor areas.
articolo
2007
Les études sur la diffusion de la microfinance se sont concentrées jusqu’à présent sur l’offre : les coûts de transaction augmentent quand les institutions de microfinance servent les populations pauvres. L’étude se base sur des données quantitativement importantes et analyse la perspective de la demande de trois IMF en Chine. L’étude démontre que le modèle Grameen Bank n’a pas atteint automatiquement les zones les plus pauvres parce-que la demande de microcrédits est positivement liée au revenu familial, aux opportunités d’investissement hors de la maison, et au niveau d’éducation des femmes qui empruntent. L’étude conclue que ces programmes de microfinance en Chine n’ont pas contribué à la réduction de la pauvreté. Pour améliorer l’outreach de la microfinance pour les pauvres, il faut stimuler la demande, tout d’abord en éliminant les autres contraintes et en développant des produits basés sur les exigences des populations déshéritées. On constate aussi l’importance de l’appui fiscal pour les populations très pauvres.
Cheng, Enjiang
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10446/27389
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